The directors and lawyers are going to be sweating now.IMO the...

The directors and lawyers are going to be sweating now.

IMO the plan was to attack MMX at a vulnerable time and put pressure on for a quick and favourable settlement to allow MMX to proceed with the takeover.

Only problem is the takeover has now fallen flat on its face and so the leverage is no longer there.

If this goes to court and CHM loses against MMX (irrespective of what happens against the others) then MMX can legitimately sue for damages and put CHM out of business. In addition if the claim is found to be totally baseless (such that it would have been clear to any reasonable legal practitioner) them anybody inside CHM or AH, or had persons or entities close to them who have bought shares prior to the action and sold them for a profit prior to losing or dropping the action are really in deep poo due to market manipulation and insider trading and risk imprisonment.

IF CHMs lawyers drop the case because the options they have accepted as payment are clearly going to be worthless CHM are in a similar position. Vexatious claims are usually vigorously counter-sued by the party subject to the claim, as the result is usually quick, successful, and well rewarded, about $500m worth of reward considering the effect on what would have been a very valuable takeover - although they will have to settle with the value of CHMs and AHs indemnity insurance as CHM are just a shell with no money or assets.